From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1501 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Sunday, June 17 2001 Volume 02 : Number 1501 In this issue: Re: [CANSLIM] Shorting Re: [CANSLIM] Need help, I'm in a slump Re: [CANSLIM] Re : M Re: [CANSLIM] Lurker:Intro Re: [CANSLIM] DGO List [CANSLIM] Cheap books Re: [CANSLIM] Biggest Winner ---------------------------------------------------------------------- Date: Sat, 16 Jun 2001 22:19:35 -0600 From: "Patrick Wahl" Subject: Re: [CANSLIM] Shorting I've also found the ideas in Farley's book a bit difficult to apply. I've been reading the message board at the Motley Fool that is dedicated to the ideas in his book, and many people have said they have had to read the book a couple of times to really understand what he is saying. Landry also writes a free column at Farley's web site - http://www.hardrightedge.com/trader.htm if anyone is interested. Its a pretty brief column, but he does post a few stock ideas most days. I have kind of been catching on to his style from his picks, which seems to be stocks that have pulled back from recent highs, not all time highs, for a few days. I've been applying this method a little bit lately since so many breakouts have been failing lately. On 16 Jun 01, at 18:59, DougC wrote: > I bought Landry's book (Dave Landry on Swing Trading) this past memorial > day weekend. TM discounted it from 100 to 80 bucks. That's what I was > waiting for. Patience pays off when book buying as well as stock buying. > ;). I've read his columns for the past six months or so but havent tried > any of his picks or swing trading techniques. Only because my main focus > has been picking stocks with canslim fundies and buying off of C&H. I use a > mixture of WON and Mark Boucher's ideas. And because of this background I > found Landrys techniques a bit difficult to accept. He doesnt care about a > stocks fundies...only that it be in one of the strongest sectors. And if he > sees a C&H pattern anywhere below a stocks 52 week high he'll trade it. But > mostly he trades pullbacks on trending stocks. Either up or down. He looks > at mostly stocks with ADX of 30 or greater. And volatility is important > too. HV greater than 40. Since reading his book (not all that thoroughly > yet) I've noticed some stocks in my weekend perusal of DGO's Daily Graphs > Index that might be tradable on pullbacks. See MOVI and HDWR. And those > stocks have CANSLIM qualities also so I'm not completely abandoning it. > Only the market this week kept me from trying it. This weekend I'm trying > to list stocks as I go through the Daily Graph Index that I might target on > the short side. (I use Puts). Overall I like the book. It's a practical > book. Nice way of saying it's a dumbed down trading guide...and with lots > of pictures (graphs). Just perfect for me. I bought Farley's book in > April...because it was in a book store and cheaper than Landry's. But > Farleys is more of generalized reference book. Not a user friendly manual. > You can't pick it up and start trading with what you learned immediately as > you can with Landrys. At least I couldnt. > > - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 17 Jun 2001 00:31:37 EDT From: Spencer48@aol.com Subject: Re: [CANSLIM] Need help, I'm in a slump Jay: It's not you: Only the truly nimble traders (eg. DG, Tim, Ian) seem to be doing any good of late-at least that's the conclusion I get from the E-mails that I've read in this forum. Actually, the market's been so chaotic, the surgeon general should put the "hazardous to your health" warning label on it. You have a very fine strategy in analyzing your past trades-WON recommends this tactic highly. You might gather a new valuable perspective that you completely forgot about, and see things that you didn't when you bought the stocks. jans In a message dated 6/15/2001 8:04:03 PM Eastern Daylight Time, imjoken@mindspring.com writes: << What do people do when they are in a slump? It seems that almost every buy I have made the past couple of months has gone wrong. I know the market doesn't know who you are but I get the feeling that when I buy, the stock goes down and when I sell it goes up. I intend to sit out the market for a while and analyze my most recent trades. (in light of that I sold 4 of my 5 stocks yesterday. Today all 4 went up while the one I held went down 10%). Last year I was up 14% in a down market but this year has been very rough and now my confidence is shaken. >> - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 17 Jun 2001 01:00:03 EDT From: Spencer48@aol.com Subject: Re: [CANSLIM] Re : M Ernie: I believe "BTW" means by-the-way. jans In a message dated 6/16/2001 11:13:34 PM Eastern Daylight Time, ernieh@mail.ev1.net writes: << Nick, I am not familar with some of the short-hand. I figured out IMHO, but I am drawing a blank on BTW? - >> - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 17 Jun 2001 03:43:34 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Lurker:Intro This is a multi-part message in MIME format. - ------=_NextPart_000_013A_01C0F6DF.AFDB5220 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Welcome to the group, Chris, it's generally a good place to be if you = want to learn (or improve on) your CANSLIM knowledge. I'll try to tackle some of your questions below, I'll stick the comments = there. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Chris McShaffrey=20 To: canslim@lists.xmission.com=20 Sent: Saturday, June 16, 2001 11:58 PM Subject: [CANSLIM] Lurker:Intro Just wanted to say hello. My name is Chris McShaffrey and I live in = Big Bear Lake, California (in the mountains approx 2 l/2 hours east of = Los Angeles - We don't live on the lake, or in it, but we have a = wonderful view of it). =20 I have been an IBD subscriber since January, 2001 and a DGO subscriber = since May. Although I have invested in mutual funds for years, my first = stock purchase was not until March, 2000 (AMAT) shortly after which the = Nasdaq had it biggest loss of the year, and then it's biggest loss in = history. The newsletter I was following also had its biggest loss in = its 30 year history! =20 Well, I have made some major mistakes and looking back I can't believe = how easy I thought it would be. I find this all very interesting and = challenging. I retired from the real estate business approximately 3 = years ago and commend those of you who still work and are able to keep = up with all this. I retired at 48 due to our successes in real estate = so I feel somewhat confident that I will be able to extend these = successes to the stock market. =20 Right now, I'm feeling a little overwhelmed. I'm still reading = HTMMIS, 24ELFIS, the archives and trying to keep up with IBD. Did you ever see the commercial on TV several years ago on the Yellow = Pages? A woman owned a florist/plant shop and the plants started = growing and wrapping around her. She was frantically searching through = the yellow pages to find a source for exotic plants. I feel the same = way - the email is coming in, the printer is spilling out stock reports, = the lastest issue of IBD has just been delivered, the talking heads on = CNBC are telling us about the latest developments and I'm frantically = calling my Broker asking "What stock are you recommending?" =20 A few questions/comments and I hope you will bear with me since I have = not gotten through all the info: 1. Does anyone also subscribe to ValueLine. IBD highly rated stocks = seem to overlap in VL; I subscribed to VL many years ago when I was a broker. Found that = their approach then was far too conservative for me, and was so limited = to blue chip stocks that it omitted most technology then appearing. I = have not used them in about a decade, but understand they may have = gotten more mainstream. 2. Since I am still studying charts, I have noticed on quite a few = occasions when a stock hits a high, there is a 3 to 4 day selloff (CPN, = ESRX, RLRN). Is there always a pattern or do you just ignore any that = may be unreadable? Every stock is a little different, some will hit a new high and keep = right on going. Others may pause for some profit taking and = consolidation. The same stock can also vary depending on how it hit that = hit. If it spiked way up on volume, it may pause the next few days. But = if it just eased up to a new high, that may be the trigger that brings = in new buying and it spikes the next day or so. "M" can also make a = difference, many members right now are talking about being stopped out, = or quickly losing profits, and so are trading much more short term. If = "M" was showing a healthy and strong uptrend, many of those members = would be more likely to let it run further. 3. If its difficult for a stock to have all excellent CANSLIM = ratings, what part of CANSLIM will you accept with a lower rating. I tend to shade on the EPS ranking where I can see a reason for it to = be otherwise too low (e.g. a significant drop in annual earnings two or = three years ago, since reversed). I put more emphasis on the trend of = the last four sequential quarters than does WON. I ignore group strength = as a selection criteria, many of my best stocks came from weak groups. = And, of course, I am strictly a small cap, low priced, thinly traded = investor. 4. Are the IBD Seminars beneficial -never attended, other members can = comment 5. I am somewhat disappointed that there was only one response to Jay = Oken's question on June 10th. 6. I am not interested in day trading. My original concept was that = if you bought the right stock, you could hold on forever. Hopefully = there's a happy medium.=20 I only buy stocks I like for long term, but will still trade out of = them as I see the need. I have owned EPIQ over the past 2+ years, and am = presently on my fourth ownership.=20 7. Just starting to get into the archives and haven't seen some of = the names here recently.=20 =20 Believe me, I have learned, alot! I'm impressed with the volume of = information by IBD and with the wonderful discussions on this site. I = didn't find you until May. I feel you are all much more experienced = than me and appreciate the chance to be a part of this group. Since I = am a pretty new to all this, I hope to contribute when I am a little = more experienced but I find alot of my questions are answered as I go = through the discussions. =20 Hope I have not rambled on here - just wanted to let you know another = "lurker" is out there and appreciates your contributions. I wonder how = many others are out there..... =20 Chris Mc =20 PS. Jay - we're all in a slump. I'm trying to use this time as an = opportunity to learn from our mistakes and be ready for the next upleg. =20 P.S. Tom - your lists are very useful. - ------=_NextPart_000_013A_01C0F6DF.AFDB5220 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Welcome to the group, Chris, it's generally a good = place to be=20 if you want to learn (or improve on) your CANSLIM = knowledge.
 
I'll try to tackle some of your questions below, = I'll stick=20 the comments there.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Chris = McShaffrey
To: canslim@lists.xmission.com =
Sent: Saturday, June 16, 2001 = 11:58=20 PM
Subject: [CANSLIM] = Lurker:Intro

Just wanted to say hello.  My = name is Chris=20 McShaffrey and I live in Big Bear Lake, California (in the mountains = approx 2=20 l/2 hours east of Los Angeles - We don't live on the lake, or in it, = but we=20 have a wonderful view of it).
 
I have been an IBD subscriber since = January, 2001=20 and a DGO subscriber since May.  Although I have invested in = mutual funds=20 for years, my first stock purchase was not until March, 2000 (AMAT) = shortly=20 after which the Nasdaq had it biggest loss of the year, and then it's = biggest=20 loss in history.  The newsletter I was following also had its = biggest=20 loss in its 30 year history!
 
Well, I have made some major mistakes = and looking=20 back I can't believe how easy I thought it would be.  I find this = all=20 very interesting and challenging.  I retired from the real estate = business approximately 3 years ago and commend those of you who still = work and=20 are able to keep up with all this.  I retired at 48 due to our = successes=20 in real estate so I feel somewhat confident that I will be able to = extend=20 these successes to the stock market.
 
Right now, I'm feeling a little=20 overwhelmed.  I'm still reading HTMMIS, 24ELFIS, the = archives and=20 trying to keep up with IBD.
Did you ever see the commercial on TV = several=20 years ago on the Yellow Pages?  A woman owned a florist/plant = shop and=20 the plants started growing and wrapping around her.  = She was=20 frantically searching through the yellow pages to find a source for = exotic=20 plants.  I feel the same way - the email is coming in, the = printer=20 is spilling out stock reports, the lastest issue of IBD has just = been=20 delivered, the talking heads on CNBC are telling us about the latest=20 developments and I'm frantically calling my Broker asking "What stock = are you=20 recommending?"
 
A few questions/comments and I hope = you will bear=20 with me since I have not gotten through all the info:
1.  Does anyone also subscribe = to=20 ValueLine.  IBD highly rated stocks seem to overlap in = VL;
I subscribed to VL many years ago = when I was a=20 broker. Found that their approach then was far too conservative for = me, and=20 was so limited to blue chip stocks that it omitted most technology = then=20 appearing. I have not used them in about a decade, but understand they = may=20 have gotten more mainstream.
2.  Since I am still studying = charts, I have=20 noticed on quite a few occasions when a stock hits a high, there = is a 3=20 to 4 day selloff (CPN, ESRX, RLRN). Is there=20 always a pattern or do you just ignore any that may be=20 unreadable?
Every stock is a little different, = some will=20 hit a new high and keep right on going. Others may pause for some = profit=20 taking and consolidation. The same stock can also vary depending on = how it hit=20 that hit. If it spiked way up on volume, it may pause the next few = days. But=20 if it just eased up to a new high, that may be the trigger that brings = in new=20 buying and it spikes the next day or so. "M" can also make a = difference, many=20 members right now are talking about being stopped out, or quickly = losing=20 profits, and so are trading much more short term. If "M" was showing a = healthy=20 and strong uptrend, many of those members would be more likely to let = it run=20 further.
3.  If its difficult for a stock = to have all=20 excellent CANSLIM ratings, what part of CANSLIM will you accept with a = lower=20 rating.
I tend to shade on the EPS ranking = where I can=20 see a reason for it to be otherwise too low (e.g. a significant drop = in annual=20 earnings two or three years ago, since reversed). I put more emphasis = on the=20 trend of the last four sequential quarters than does WON. I ignore = group=20 strength as a selection criteria, many of my best stocks came from = weak=20 groups. And, of course, I am strictly a small cap, low priced, thinly = traded=20 investor.
4.  Are the IBD Seminars = beneficial -never attended, other members can = comment
5.  I am somewhat disappointed = that there=20 was only one response to Jay Oken's question on June = 10th.
6.  I am not interested in day=20 trading.  My original concept was that if you bought the right = stock, you=20 could hold on forever. Hopefully there's a happy medium.
I only buy stocks I like for long = term, but=20 will still trade out of them as I see the need. I have owned EPIQ over = the=20 past 2+ years, and am presently on my fourth ownership.
7.  Just starting to get into = the archives=20 and haven't seen some of the names here recently. 
 
Believe me, I have learned, = alot!  I'm=20 impressed with the volume of information by IBD and with the wonderful = discussions on this site.  I didn't find you until May.  I = feel you=20 are all much more experienced than me and appreciate the chance to be = a part=20 of this group.  Since I am a pretty new to all this, I hope to = contribute=20 when I am a little more experienced but I find alot of my questions = are=20 answered as I go through the discussions.
 
Hope I have not rambled on here - = just wanted to=20 let you know another "lurker" is out there and appreciates your=20 contributions.  I wonder how many others are out = there.....
 
Chris Mc
 
PS.  Jay - we're all in a = slump.  I'm=20 trying to use this time as an opportunity to learn from our = mistakes and=20 be ready for the next upleg.
 
P.S. Tom - your lists are very=20 useful.
- ------=_NextPart_000_013A_01C0F6DF.AFDB5220-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 17 Jun 2001 03:47:04 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] DGO List This is a multi-part message in MIME format. - ------=_NextPart_000_0144_01C0F6E0.2CD15F40 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Careful, Norm, I am not saying they are "buyable", just "watchable". I = have later looked at some of them, and saw poor earnings forecasts, for = example. I don't do any due diligence, that's up to you individually. = Rarely do I mention one I am watching or interested in due either price, = size, or its industry group. My review is solely limited to the chart pattern I see over the prior = six months (plus, of course, the screening already done by DGO). Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Norman=20 To: canslim@lists.xmission.com=20 Sent: Saturday, June 16, 2001 7:42 PM Subject: Re: [CANSLIM] DGO List Tom, I still use the list. There is usually a good bit of overlap with the = Weekend Review (in the Friday print edition) but always a half dozen or = more different ones. And I like to see what charts an experienced = person considers buyable. Norm ----- Original Message -----=20 From: Tom Worley=20 To: CANSLIM=20 Sent: Saturday, June 16, 2001 4:23 PM Subject: [CANSLIM] DGO List List is down again this week at 202, last week at 228. Before that = it was 238 and 278. A truly dreary week, but the market was kind to my = small caps, hitting a new portfolio high and closing the week very close = to that high. So I approach the list this week with a "glass half full" = attitude. But overall "M" is definitely looking ugly, at least until we = get well into the earnings reporting cycle. And still on the horizon is = the FOMC meeting on 6/26/01, a rate cut is a given, but the magnitude of = that cut will likely dictate the short term "M".=20 This original list from DGO consists of those stocks in the Daily = Graphs books (roughly 2,800) that as of Friday had both RS and EPS of 80 = or better. Additionally, they must have been at or within 5% of the 12 = month high during the prior week. In my review of this overall list, I = am only focusing on the recent (6 months) chart patterns.=20 This review of the overall list is solely intended to identify = stocks with good CANSLIM qualities, using authentic WON sourced data, = that are showing some kind of constructive chart formation. The idea is = to present some candidates for member's watch list, not to suggest they = are presently a "buy" candidate. No due diligence has been done. My own = personal bias against certain industries is largely ignored in the = review. As always, my shorthand notation is Bx where "B" means a "B"ase of = "x" weeks, IMO. So, a B5 notation means I see a base of 5 weeks = duration. LLUR =3D Lower Left Upper Right Is anybody still reading / using this list? Should I suspend it = until "M" turns positive again? Stocks with bases forming were heavily dominated by small regional = banks. I suspect these groups are doing so well due the large number = getting acquired. =20 EPIQ - b/o Wed, about 10% extended, DISCLOSURE: I still own a qtr = position MTON - despite Friday's trading range, it closed in the base forming = at 55 on heavy volume TARO - the LLUR pattern is getting away from the 50 DMA, trend is = accelerating PECS - sloppy B4 KKD - price spike on Fri just under the pivot on volume, B2+, 2:1 = split coming NYCB - handle forming on a very flat saucer RLRN - double bottom with capitulation, approaching the pivot ESI - B2 PLB - LLUR QUIX - double bottom??, @pivot FLYA - B1+ WLT - B2, dividend cut UHCO - B5, b/o Friday, low volume, low price URS - B3 DME - LLUR RDN - B4 FCN - B2+ NFB - settling into a shallow LLUR ATK - B7 CITZ - B5 BMET - B2+ FNFG - B6 AMIE - B2+ RBNC - B6 UMPQ - B4+ PBKS - B4 BPOP - B3 EFX - B2 CLJ - B2 HRL - B2 FESX - B3 ALLE - B4+ Happy Hunting, Tom Worley stkguru@netside.net AIM: TexWorley - ------=_NextPart_000_0144_01C0F6E0.2CD15F40 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Careful, Norm, I am not saying they are "buyable", = just=20 "watchable". I have later looked at some of them, and saw poor earnings=20 forecasts, for example. I don't do any due diligence, that's up to you=20 individually. Rarely do I mention one I am watching or interested in due = either=20 price, size, or its industry group.
 
My review is solely limited to the chart pattern I = see over=20 the prior six months (plus, of course, the screening already done by=20 DGO).
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Norman
To: canslim@lists.xmission.com =
Sent: Saturday, June 16, 2001 = 7:42=20 PM
Subject: Re: [CANSLIM] DGO = List

Tom,
 
I still use the list.  There is usually a good bit of = overlap with=20 the Weekend Review (in the Friday print edition) but always a half = dozen or=20 more different ones.  And I like to see what charts an = experienced person=20 considers buyable.
 
Norm
----- Original Message -----
From:=20 Tom=20 Worley
To: CANSLIM=20
Sent: Saturday, June 16, 2001 = 4:23=20 PM
Subject: [CANSLIM] DGO = List

List is down = again this=20 week at 202, last week at 228. Before that it was 238 and = 278. A=20 truly dreary week, but the market was kind to my small caps, hitting = a new=20 portfolio high and closing the week very close to that high. So I = approach=20 the list this week with a "glass half full" attitude. But overall = "M" is=20 definitely looking ugly, at least until we get well into the = earnings=20 reporting cycle. And still on the horizon is the FOMC meeting on = 6/26/01, a=20 rate cut is a given, but the magnitude of that cut will likely = dictate the=20 short term "M".=20
 
This original list=20 from DGO consists of those stocks in the Daily Graphs books = (roughly=20 2,800) that as of Friday had both RS and EPS of 80 or better. =20 Additionally, they must have been at or within 5% of the 12 month = high=20 during the prior week. In my review of this overall list, I am only = focusing=20 on the recent (6 months) chart patterns.=20
 
This review of the overall list is solely = intended to=20 identify stocks with good CANSLIM qualities, using authentic WON = sourced=20 data, that are showing some kind of constructive chart = formation. The=20 idea is to present some candidates for member's watch list, not to = suggest=20 they are presently a "buy" candidate. No due diligence has been = done. My own=20 personal bias against certain industries is largely = ignored in=20 the review.
 
As always, my shorthand notation = is Bx where=20 "B" means a "B"ase of "x" weeks, IMO. So, a B5 notation means I see = a base=20 of 5 weeks duration.
 
LLUR =3D Lower Left Upper=20 Right
 
Is anybody still reading / using this list? Should I suspend it = until=20 "M" turns positive again?
 
Stocks with bases forming were heavily dominated by small = regional=20 banks. I suspect these groups are doing so well due the large number = getting=20 acquired.
=
 
EPIQ  - b/o Wed, about 10% extended, = DISCLOSURE: I=20 still own a qtr position
MTON - despite Friday's trading range, it closed = in the=20 base forming at 55 on heavy volume
TARO - the LLUR pattern is getting away from the = 50 DMA,=20 trend is accelerating
PECS - sloppy B4
KKD - price spike on Fri just under the pivot on = volume,=20 B2+, 2:1 split coming
NYCB - handle forming on a very flat = saucer
RLRN - double bottom with capitulation, = approaching the=20 pivot
ESI - B2
PLB - LLUR
QUIX - double bottom??, @pivot
FLYA - B1+
WLT - B2, dividend cut
UHCO - B5, b/o Friday, low volume, low = price
URS - B3
DME - LLUR
RDN - B4
FCN - B2+
NFB - settling into a shallow LLUR
ATK - B7
CITZ - B5
BMET - B2+
FNFG - B6
AMIE - B2+
RBNC - B6
UMPQ - B4+
PBKS - B4
BPOP - B3
EFX - B2
CLJ - B2
HRL - B2
FESX - B3
ALLE - B4+
 
Happy Hunting,
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
- ------=_NextPart_000_0144_01C0F6E0.2CD15F40-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 17 Jun 2001 01:21:39 -0700 From: David Thompson Subject: [CANSLIM] Cheap books For those of you who are struggling with the price of books, some help. I've found that mysimon.com is a good site to search for a book. It turned me on to half.com for used books, and Amazon.com (also for used), and Walmart.com. Walmart appears to have the cheapest new books anywhere when you factor in the shipping costs (usually about $2.50). Walmart prices are about 30% less than Amazon on new volumes. They also seem to be as fast as Amazon. The used books I've received through listings in Amazon have been undistinguishable from new but they've been half price or less. (e.g. $12.50 for a $39.99 book.) Hope this helps. I'm definitely open to hearing more about helpful books..... I have all of WON's tomes. David - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 17 Jun 2001 04:26:18 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Biggest Winner This is a multi-part message in MIME format. - ------=_NextPart_000_0152_01C0F6E5.A77CEDE0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Jay, Tough question to answer. My biggest winner on an annualized basis would = have to be a little company then based in Tampa, FL called Assix Int'l. = At the time, they made a "tire balancing" machine which balanced and = shaved a car tire to smooth out any irregularities in the tire or rim. = Their biggest customer was Sears, who had their machines in every one of = their Service Centers. I had visited the company and done an on-site due = diligence previously. I had a few clients and friends in the stock, and it had gone south = (this is mostly pre-CANSLIM for me) due contract cancellations, most = recently by Sears. They were locked in litigation with Sears. I was = working late on a Friday, and saw a news story, David (Assix) had = defeated Goliath (Sears) to the tune of about $18 million. I immediately = got on the phone with the CFO and spent an hour asking questions. Monday = morning about 20 minutes into the market I bought at 1.625, and sold = shortly before the close at 4.875, so a one day triple. But I consider EPIQ to be my best overall investment. I found it using = my approach to CANSLIM (checking small caps hitting new highs for = CANSLIM qualities) in early 1999. It met essentially all my requirements = for RS, EPS, chart, sequential growth in both earnings and revenues. = It's PE was very high, and ROE quite low, and there were no analysts = following it. It was not in Daily Graphs at the time, nor likely to make = most investors radar. There was virtually no funds or other = institutional ownership, but very high management ownership (which is = bullish for me). On that first trip, it went up very steadily for seven straight weeks, = never threatened to stop me out once. I sold for a 70% net gain after = those seven weeks as I wanted to protect my profit, and thought it had = gotten too high. It went just a little higher after that before = correcting. One big reason I liked the stock, aside from the quick = profit, was its business model - making software for bankruptcy = trustees. They were increasing business when the economy was still doing = well, and it was only a matter of time before the economy would slow, or = collapse. After all, the airhead media commentators were already telling = us both the bull market and the economy had lasted too long. Among the = many economic reports I monitor are the reports on consumer credit and = consumer income. I knew that us Americans are generally poor savers, and = tend to outspend our income. So any slowdown in the economy, any = significant increases in unemployment, would likely mean substantial = growth in bankruptcy. So this was a company growing in the good times = (so making me money even then) that would do even better in bad times = (thus serving as my hedge against a bear market). I bot and sold it = twice more after that, netting 20% and 30%. The last time I bot it was = April 2000, at a split adjusted price of $6.75. I sold half the = position once I had doubled, then sold another quarter position once I = was up over 400%. I continue to own the remaining quarter position, now = up 533%. It has more than tripled just since Jan 1, '01. Just as WON has one arbitrary selling rule for new CANSLIMers (sell when = you are up 20% - period), I too have a personal rule. Once I have = doubled, I must sell at least half on the first sign of any real = weakness. That happened on Feb 2, 2001, when I sold the half position.I = sold the following quarter position simply because the value of this = position was out of proportion to my diversified portfolio, my exposure = was too great. It took me six straight days of using a tight trailing = stop (less than 2%) before I was finally stopped out. Altho the price = today is well beyond anything my modeling would suggest, I will hold it = for now because I no longer can predict how high it might go (and the = earnings whisper for Q2 is also quite high). I am also impressed at how = well it recovered from the dip caused by the announcement of a secondary = offering (including the sale of 425,000 shares by the CEO) which caused = the dip that stopped me out. Suggests to me the secondary has already = been placed in institutional hands. And that's despite another 1.35 = million restricted shares bot 12/31/00 by institutionals that can now = trade freely (they paid a split adjusted $10, so sitting on a huge short = term profit). Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Jay Oken=20 To: canslim@lists.xmission.com=20 Sent: Sunday, June 10, 2001 8:45 PM Subject: [CANSLIM] Biggest Winner Question for the group: =20 What was your biggest winner?=20 =20 1. How did you find it and where on the chart did you buy it? 2. How did it stack up on the CANSLIM scale? 3. How long did you hold it? 4. When/why did you decide to sell it and how did it perform after = you sold it? - ------=_NextPart_000_0152_01C0F6E5.A77CEDE0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Jay,
 
Tough question to answer. My biggest winner on an = annualized=20 basis would have to be a little company then based in Tampa, FL called = Assix=20 Int'l. At the time, they made a "tire balancing" machine which balanced = and=20 shaved a car tire to smooth out any irregularities in the tire or rim. = Their=20 biggest customer was Sears, who had their machines in every one of their = Service=20 Centers. I had visited the company and done an on-site due diligence=20 previously.
 
I had a few clients and friends in the stock, and it = had gone=20 south (this is mostly pre-CANSLIM for me) due contract cancellations, = most=20 recently by Sears. They were locked in litigation with Sears. I was = working late=20 on a Friday, and saw a news story, David (Assix) had defeated Goliath = (Sears) to=20 the tune of about $18 million. I immediately got on the phone with the = CFO and=20 spent an hour asking questions. Monday morning about 20 minutes into the = market=20 I bought at 1.625, and sold shortly before the close at 4.875, so a one = day=20 triple.
 
But I consider EPIQ to be my best overall = investment. I found=20 it using my approach to CANSLIM (checking small caps hitting new = highs for=20 CANSLIM qualities) in early 1999. It met essentially all my requirements = for RS,=20 EPS, chart, sequential growth in both earnings and revenues. It's PE was = very=20 high, and ROE quite low, and there were no analysts following it. It was = not in=20 Daily Graphs at the time, nor likely to make most investors radar.  = There=20 was virtually no funds or other institutional ownership, but very high=20 management ownership (which is bullish for me).
 
On that first trip, it went up very steadily for = seven=20 straight weeks, never threatened to stop me out once. I sold for a 70% = net gain=20 after those seven weeks as I wanted to protect my profit, and thought it = had=20 gotten too high. It went just a little higher after that before = correcting. One=20 big reason I liked the stock, aside from the quick profit, was its = business=20 model - making software for bankruptcy trustees. They were increasing = business=20 when the economy was still doing well, and it was only a matter of time = before=20 the economy would slow, or collapse. After all, the airhead media = commentators=20 were already telling us both the bull market and the economy had lasted = too=20 long.  Among the many economic reports I monitor are the reports on = consumer credit and consumer income. I knew that us Americans are = generally poor=20 savers, and tend to outspend our income. So any slowdown in the economy, = any=20 significant increases in unemployment, would likely mean substantial = growth in=20 bankruptcy. So this was a company growing in the good times (so making = me money=20 even then) that would do even better in bad times (thus serving as my = hedge=20 against a bear market). I bot and sold it twice more after that, netting = 20% and=20 30%. The last time I bot it was April 2000, at a split adjusted price of = $6.75.  I sold half the position once I had doubled, then sold = another=20 quarter position once I was up over 400%. I continue to own the = remaining=20 quarter position, now up 533%. It has more than tripled just since Jan = 1,=20 '01.
 
Just as WON has one arbitrary selling rule for new = CANSLIMers=20 (sell when you are up 20% - period), I too have a personal rule. Once I = have=20 doubled, I must sell at least half on the first sign of any real = weakness. That=20 happened on Feb 2, 2001, when I sold the half position.I sold the = following=20 quarter position simply because the value of this position was out of = proportion=20 to my diversified portfolio, my exposure was too great.  It took me = six=20 straight days of using a tight trailing stop (less than 2%) before I was = finally=20 stopped out. Altho the price today is well beyond anything my modeling = would=20 suggest, I will hold it for now because I no longer can predict how high = it=20 might go (and the earnings whisper for Q2 is also quite high).  I = am also=20 impressed at how well it recovered from the dip caused by the = announcement of a=20 secondary offering (including the sale of 425,000 shares by the CEO) = which=20 caused the dip that stopped me out. Suggests to me the secondary has = already=20 been placed in institutional hands. And that's despite another 1.35 = million=20 restricted shares bot 12/31/00 by institutionals that can now trade = freely (they=20 paid a split adjusted $10, so sitting on a huge short term = profit).
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Jay=20 Oken
To: canslim@lists.xmission.com =
Sent: Sunday, June 10, 2001 = 8:45 PM
Subject: [CANSLIM] Biggest = Winner

Question for the group:
 
What was your biggest winner? =
 
1.    How did you find = it and=20 where on the chart did you buy it?
2.    How did it stack = up on the=20 CANSLIM scale?
3.    How long did you = hold=20 it?
4.    When/why did you = decide to=20 sell it and how did it perform after you sold=20 it?
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